Catalonia ended 2012 with a 3.6% inflation rate due to an increase in the price of drugs, university fees and fuel
Combined with the salary reductions and the taxation increase, the rise in inflation means that Catalans have lost purchasing power. The spending of the average Catalan family increased by some 110 euros per month compared to 2011 in order to buy the same amount of goods and services, while the net revenue decreased. In the whole of Spain, the inflation rate for the last 12 months was 2.9%, affected by the VAT increase approved by the Spanish Government. In Catalonia, it was higher due to fees adopted by the Catalan Government in order to reduce the public deficit: namely those affecting drug prescriptions and university education.
Madrid (ACN).- Catalonia registered a 3.6% annual inflation rate at the end of December, according to the definitive data released on Tuesday by the Spanish Statistics Institute (INE). However, for the whole of Spain, prices increased by 2.9% over 2012. Catalonia normally has an inflation rate that is 0.1 or 0.2 percentage points higher than the Spanish average. The current difference of 0.7 points is mainly due to the price increases registered in the second half of the year, when the drug prescription fee and the rise of university fees were implemented by the Catalan Government in order to reduce the public deficit. Barcelona is the province in which the prices increased the most in the whole of Spain. Furthermore, the inflation rate rose in the whole of Spain due to the VAT increase approved by the Spanish Executive. Last January, the annual inflation rate in Catalonia was 2.5%, in October it reached a high of 4.2% - the highest recorded since 2008 – and in December it ended the year at 3.6%. The inflation rate set in December is the one used as a reference to update the salaries that are still paired with this index, which are a minority in Catalonia. However, many citizens have seen their salaries reduced or frozen. Therefore, the rise in the inflation rate combined with salary reductions and a taxation increase (Income, Wealth, special taxes, etc.) have reduced the purchasing power of Catalans over the last year. An average family in Catalonia was spending €31,729 in 2011. In 2012, if they were to buy and pay for the same goods and services, they would have to spend €33,047, according to a study made by the Catalan Public Television Broadcaster. This means spending €1,318 more per year, equivalent to €110 per month, while they have to pay higher taxes and their salaries have been reduced.
Catalonia is, along with Cantabria, the Autonomous Community where prices have increased the most over 2012. Prices increased by 3.6% from January to December. In January, the inflation rate was 2.5%, representing an increase of 1.1 percentage points over the year. According to the INE, the commodities with the highest price increases were drugs, with a price increase of 21.2% due to the new healthcare co-payment scheme, and education, the price of which grew by 14.7%.
Barcelona is the Province in Spain where prices increased the most, with a 3.8% annual inflation rate at the end of December. The Province of Girona (North-Eastern Catalonia) ended 2012 with a 3.3% inflation rate, the same as Lleida (Western Catalonia). The Province of Tarragona, in Southern Catalonia, registered a 3.2% annual inflation rate.